Question

a farmer borrowed rs 25000 from his friend at 8 percentage per annum after 2 year he settled the account by paying rs 12000 cash and buffalo for the balance amount. find the price of buffalo. ​

Answer 1

Answer

• Cost of the Buffalo = Rs. 17,160

Explanation :

Given :

• Principal = Rs. 25,000
• Rate = 8 %
• Time = 2 years
• The farmer settled the account by paying Rs. 12,000 cash and buffalo

To find :

• The price of Buffalo

Knowledge required :-

• Formula to find amount :-

⠀⠀⠀⠀⠀⠀Amount = P[1 + r/100]ⁿ

where,

• P = Principal
• r = rate
• n = time

Solution :

⠀⇒ Amount = 25,000[1 + 8/100]²

⠀⇒ Amount = 25,000[1 + 4/50]²

⠀⇒ Amount = 25,000[1 + 2/25]²

⠀⇒ Amount = 25,000[(25 + 2)/25]²

⠀⇒ Amount = 25,000[27/25]²

⠀⇒ Amount = 25,000 × 27/25 × 27/25

⠀⇒ Amount = 1,000 × 27 × 27/25

⠀⇒ Amount = 40 × 27 × 27

⠀⇒ Amount = Rs. 29,160

Amount = Rs. 29,160

According to the question,

⠀⇒ 12,000 + Cost of Buffalo = Amount

⠀⇒ 12,000 + Cost of Buffalo = 29,160

⠀⇒ Cost of Buffalo = 29,160 - 12,000

⠀⇒ Cost of buffalo = 17,160

Cost of Buffalo = Rs. 17,160